One Method for Estimating the Parameters for the Capital Asset

question 22

True/False

One method for estimating the parameters for the Capital Asset Pricing Model is to estimate a portfolio's characteristic line via regression techniques using the single-index market model.

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Definitions:

Imitation

The action of using someone or something as a model and attempting to replicate their behavior or actions.

Observational Learning

A learning process that occurs through observing the behavior of others and the outcomes of those behaviors.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which was developed by B.F. Skinner.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, theorized to lead to depression and other mental illnesses.